South Island Lignite's Phase II Investigations

The lignite deposits of Southland and Central Otago are a potentially significant energy resource for New Zealand. Current estimates put the technically mineable lignite reserves at 5.3 billion tonnes, which is more than ten times the energy content of the Maui gas field. Thus, the strategic importance of the lignite as a basis for maintaining current levels of self-sufficiency in transport fuels, or as a possible feedstock for electricity generation, deserves full investigation. The full extent of the lignite deposits was only recently established as the result of a scout drilling programme undertaken between 1976 and 1979 by the Mines Division of the Ministry of Energy, and from companion studies conducted by the New Zealand Geological Survey. These discoveries of large quantities of lignite coupled, at the time, with rising oil prices, raised the prospect of their development for production of transport fuels.